It is usually the practice of the treasury benches to thump the desks whenever the Finance Minister presents the Union budget for a financial year and announces a change in the existing benefits or provisions of rules. The headlines in the press this year were in tune with the claim of the government that the budget is a people's budget benefitting particularly the middle class.There is no denying the fact that the new Income Tax slab as presented looks favourable with the raising of the rebate in income tax from a maximum of Rs 25,000 for income upto Rs 7 lakh to maximum of Rs 60,000 for income upto Rs 12 lakh. However, all may not be as rosy as it is looks. There is complete silence about the withdrawal of several exemptions and deductions that were available under the old tax regime. For example under Sec 80-C, a deduction of Rs.1.50 lakhs was allowed for investment in PPF etc ; under Sec 80 TTB, deduction of Rs. 50,000 was allowed in amount of interest from savings; interest paid on Home loan upto 2.00 lakhs was deductible; under Sec 80 D, medical insurance premium paid upto Rs.50,000 was allowed to be deducted from income; under Sec 80 CCD, contribution to NPS upto Rs 50,000 was deductible. So also HRA etc. All these are apparently withdrawn. Therefore, it will be prudent for us to withhold the celebrations over the budget announcement for the present and wait to read the fine print in the ensuing Income-Tax Bill.
